Saudi Press

Saudi Arabia and the world
Thursday, Oct 02, 2025

IMF boss warns of 'painful' Brexit

IMF boss warns of 'painful' Brexit

Brexit will add to world economic woes, IMF managing director Kristalina Georgieva says.

he new head of the International Monetary Fund has warned that Brexit in whatever form will be "painful", adding to the effects of a global slowdown.

Kristalina Georgieva said the split will hurt not only the UK and European Union, but also low income countries with economic ties to them.

IMF data show that growth has already slowed in almost 90% of the world.

"It is very obvious that this [Brexit] is going to be painful," she told the BBC.

Ms Georgieva said UK politicians will have to figure out how to shield people hurt by Brexit - but the options available to fund those measures are limited.

"The choices are not that many - you either borrow or you look at the [tax] increase," she said.

Brexit: Deal essentially impossible, No 10 source says after PM-Merkel call

IMF boss Kristalina Georgieva warns of 'painful' Brexit

Tony Blair: 'No-deal Brexit risks UK break-up'

Ms Georgieva, who spoke to the BBC ahead of the IMF's annual meeting in Washington next week, said the IMF is also concerned about the effect of Brexit outside of the UK.

"I particularly worry about low-income countries that are in a significant way dependent on the European Union and the UK," she said.

"Unfortunately this is not great news," she said of Brexit. "And it comes at a time of compounded other factors that slow down growth."


Trade war


The US and China are locked in a trade war over state subsidies and technology theft that has led the two sides to impose tariffs on billions of dollars worth of each other's goods.

US President Donald Trump has also picked fights with allies such as Europe and Canada over cars, steel and aluminium.

The disputes have brought trade growth to a "near standstill" and hurt manufacturing and business investment, Ms Georgieva said.

In 2020, the IMF predicts that they will knock almost 1% off of global growth in 2020 - or roughly $700bn.

"What is most significant is that it is not the direct impacts of tariffs that are most harmful. Most harmful is the loss of confidence," Ms Georgieva said.

'Bigger loser'
The White House has said the tariffs are meant to force China to change its policies and dismissed concerns about growth, arguing that any harm to the US pales in comparison to the damage on China.

"That is not a good excuse if you can say, you know what, I'm a loser, but you're a bigger loser than me," Ms Georgieva said.

"I don't think that this is what people expect from leadership."

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
UK, Canada, and Australia Officially Recognise Palestine in Historic Shift
New Eye Drops Show Promise in Replacing Reading Glasses for Presbyopia
Dubai Property Boom Shows Strain as Flippers Get Buyer’s Remorse
Top AI Researchers Are Heading Back to China as U.S. Struggles to Keep Pace
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
UAE-US Stargate Project Poised to Make Abu Dhabi a Global AI Powerhouse
Trump and Starmer Clash Over UK Recognition of Palestinian State Amid State Visit
Saudi Arabia cracks down on music ‘lounges’ after conservative backlash
Saudi Arabia Signs ‘Strategic Mutual Defence’ Pact with Pakistan, Marking First Arab State to Gain Indirect Access to Nuclear Strike Capabilities in the Region
Sam Altman sells the 'Wedding Estate' in Hawaii for 49 million dollars
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
Kuwait opens bidding for construction of three cities to ease housing crunch.
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
Could AI Nursing Robots Help Healthcare Staffing Shortages?
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Did the Houthis disrupt the internet in the Middle East? Submarine cables cut in the Red Sea
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Tether Expands into Gold Sector with Profit-Driven Diversification
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
Israeli Airstrike in Yemen Kills Houthi Prime Minister
After the Shock of Defeat, Iranians Yearn for Change
YouTube Altered Content by Artificial Intelligence – Without Permission
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Cristiano Ronaldo Makes Surprise Stop at New Hong Kong Museum
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
×